This assignment addresses the marketing plan for Dairy Queen Dairy Pakistan. I've used many components of marketing intend to complete this assignment. In this task I have done situation examination. In situation analysis by doing swot evaluation dairy products queen is a brand of Haleeb foods which is a strong company. It is pioneer in pouch packing. However the unavailability and the
Situation analysis details an organization's competitive position, working and financial condition and basic state of interior and external affairs. (By D. Power)
1. Dairy Queen has good brand understanding since it is an integral part of Haleeb Foods which really is a well respected company in Pakistan and has a solid collection of brands.
2. Dairy Queen milk is facing low cost because it comes in the marketplace in pouch pack which is less costly than brick packaging. So it is bearing an inexpensive in the creation of dairy.
3. Dairy Queen Dairy is pioneer in providing pouch pack because it is the one which has come in pouch load up.
4. Dairy products Queen is facing less syndication cost because it has skilled and encouraged staff.
5. Dairy products Queen is providing a best value and healthy milk since it is using a competent Ultra heat therapy technology
1. Dairy Queen dairy has a big weakness of availableness and access because it is not common at every shop and stores. It is merely available in certain retailers and stores. People face a lot of problems in finding it.
2. Many people do not have enough recognition about the Dairy Queen dairy since it is not so much promoting itself by marketing promotions. In lots of areas people do not have enough understanding of.
3. Packaging of dairy milk is not good because people are not so much content with this packing. Its packing is loose because it is demonstrating pouch pack from which sometimes drip and milk pour right out of the pouch.
4. Dairy Queen product packaging is not good because customer cannot easily hold it in the refrigerator when compared with Haleeb and Nestle.
5. Dairy Queen is loosing the talk about in the market because it is not satisfying the demand of the clients sometimes it has become.
Dairy Queen can entice the greater customers who rest in middle class as well as high income bracket because there is high inflation in the Pakistan current economic climate while its price sits between your Olper dairy and Nestle dairy which will be the competitors.
Dairy Queen can increase its market share by lowering it price. Because people in Pakistan are usually more price conscious.
Dairy Queen can increase its sales by entering new areas where people have acknowledged about this product but it isn't available there.
Floods in Pakistan is a big threat for Dairy products Queen because it can a great deal of problem in transporting the raw material into the manufacturer and in distribution of the done good to the marketplace because roads network has been badly effected.
Dairy Queen can face a far more reduction in sales because it is not offering so much focus on the marketing promotions of the merchandise. So people have no idea so well about the product and its own features.
Dairy Queen can be totally right out of the market because the syndication force is not really much active and Dairy Queen is not easily available in the market. So that it can create a negative impact in the mind of the customer.
It can happens that another competitor introduce a same product then the market share of Dairy products Queen will more effect because competitor product will entice the customers of the Dairy products Queen.
Dairy Queen can face a high cost of natural material in the foreseeable future because their is tough economy and high inflation in the Pakistan current economic climate so it will results its Quality.
The Five Forces style of Porter can be an outside in business device strategy tool that can be used to make an research of the appeal of an industry structure. (Ref#6)
Dairy Queen has threat of substitute from the loose milk and Gawalla market(outlets who sell fresh open milk). There are many fresh milk retailers and other dairy that exist locally like in the roadways of domestic areas, markets and shopping malls. centers in the market. So the threat of substitutes is high because there is high inflation and tough economy in the Pakistan current economic climate. So if the price of Dairy Queen dairy increase then your customer will move easily to the loose dairy or other product. which is cheap in price.
Dairy Queen face a low cost in purchasing the fresh milk since it buy fresh dairy in huge amount and it has a good dealer system which reduce the power of the provider so their turning cost is not so much high. Dairy Queen collected is using two ways to gather the fresh dairy from the suppliers the first is self collection and the next one is deal collection.
As Dairy products Queeen is an integral part of popular brand Haleeb and fresh milk is main ingredient because of their UHT milk, so they know if indeed they rely on few suppliers with large amounts, it can create problems for the coffee lover. To be able to reduce their distributor electric power it has a good resource system scheduled to which its turning cost is not high.
Bargaining ability of the client is high, because of the availability of same product from others on the market almost at the same price. In the beginning when there not many companies in the market, bargaining power of customer is more high.
In the recent time with the increase of electronic and print mass media, awareness in customers have raises and today customers know what they go to acquire and what exactly are other products /brands can be found almost at the same price, also people becomes health mindful. This ultimately influences any business sales and increase buyer ability.
PESTLE can be used to external analyses means analyses on the macro environment in which the business operates.
Government has always tried out promoting dairy industry within the country. For this federal has given tons of relaxation to milk industry for case there is no taxes or excise obligation on dairy food. Government has a complete and detailed legal framework for milk industry to keep things in flow and up to make within the industry. At the same time government maintains on revising its regulations that may help bettering overall industry.
The main financial factor acting because of this industry is uneducated suppliers of organic material, so a lot of raw material is afflicted in conditions of its quality and preservation issues and a huge percentage of raw materials go to spend before its being refined. But at the same time UHT milk doesn't have any kind of taxes on it which makes it a good financial factor for the industry progress and improvements in its production. As UHT milk is a little costly than the normal dairy or non refined dairy so income factor of consumer is usually an important cost-effective factor for the industry players. UHT milk industry carry consumers from middle and lower school and income level because of this school has increased over time which is something in favour for the industry.
Socially the most important thing for the industry is that people have realized the importance of UHT milk due to its security and better health issues than ordinary dairy that could carry lots of bacterias and bacteria during its complete delivery to the end user. But at the same time people avoid using UHT milk due to its cost factor, being costly utilization of UHT milk is much less than other un prepared dairy, but with the time and understanding among people they may have realized that the price these are paying does pay them again sufficient in conditions of medical issues and quality of milk. So with time this matter is lessening as folks have surely got to know the value of what they are spending money on. Critical social issue on offer among consumer about UHT milk is that its something cured or created artificially, which must be taken treatment of by industry player through their understanding and information promotions for their consumers to make sure they are clear about such thoughts they bring about UHT dairy to utilize better potential from the marketplace.
First of all because the farmers or Gawala don't possess the method of transportation to provide the dairy up the value chain themselves, and they also don't have the methods to keep up with the freshness of the dairy (refrigeration) so the milk retains its real value. Both issues are related to the option of appropriate solutions. Technology is, in cases like this generally a function of capital. In milk and specially UHT milk industry technology is a crucial factor in terms of obstacles to access. Although the marketplace is already saturated, downward pressure on UHT milk prices could be created through either meeting existing capacity, or the establishment of new UHT plant life. The downward price pressure would then stimulate new section of socio-economic mix section to enter the market as consumer of UHT milk. Custom duties on the transfer of packaging equipment, which is at the heart of the UHT portion of the industry (either TetraPack technology, or alternatives), are prohibitively high. The man-made cover on increase on demand of UHT there fore creates a negative impact on small farmers, who must continue to resource to the informal sector where they are simply at the mercy of the Gawala. So because being expensive as high capital purchases are necessary for establishing UHT milk plants scheduled to heavy capital cost on equipment this industry is suffering.
As Dairy Queen Milk is at declining stage therefore i propose in development strategies the market penetration and product development for Dairy Queen. Because Dairy products Queen is decline. It is not attaining its goals when compared with its objectives. Dairy Queen is a part of a strong brand name Haleeb Foods. It will not take a very long time. Folks are more price sensitive. I suggest that Dairy Queen will spend more on adverts and sales deals. Because by doing advert and sales promotion it can entice more new customers as well as it'll retain its prospects. In sales campaigns it will provides discounts. Dairy products Queen will also go for product development becauses people want new things or want change Dairy Queen will come with new products like Dairy Queen Dry milk and Dairy Queen tea dairy. It will concentrate on there the lower income, middle income who are price conscious as well as the lower upper income level people because there is recession and high inflation in the Pakistan market so that it will attract these people.
Market Growth Rate
Dairy Queen Dairy lies in Question Grades are high progress and low market share. Low market talk about often means low profits and vulnerable cash flows because the market is growing faster than the merchandise. THEREFORE I propose to large investment to increase market show. If market stocks grown they can become stars and later cash cows.
The company use GAP analysis to verify the gap between the forecast sales and the actual sales. It will choose the marketplace penetration strategy. Because the product is in decrease stage so the company will add more features in its product. So that it can achieve its concentrate on.
Porter's Competitive Strategies:
I recommend that the business will choose two strategies one Focus and the next cost leadership. The business will choose target strategy since it is targeting the center income level and Lower income level customers. The business use cost leadership strategy because it is giving good deal milk so it is essential for the company to bear the low cost as company is using pouch presentation for dairy products queen which is cheaper than brick packaging.
Tactics are options and techniques that aid the achievements of strategies. Tactics usually are the use and manipulation of the 7Ps:
I suggest that Dairy Queen will provide 1500ml presentation and 2000ml product packaging because there are many people who bought milk in large size specially the drink shops who use milk in dairy shakes and the tea shops who use in tea and the colleges and universities canteens. They are the individuals who use dairy in a large volume. Dairy products Queen will also provide 160ml packaging because many people who do jobs like helpers in construction business who do not manage and only want one time tea.
I suggest that Dairy Queen provides a good quality milk with a ninety days expiry date because most shopkeepers who buy the milk in mass prefer the expiry date. In any other case they can face a loss.
I propose that Dairy Queen will establish dry milk in different packaging. It'll give in 100g, 180g, 250g, 375g, 500g and 1000g because there are a lot of individuals who who like dried out milk packaging especially in banking institutions, oofices and the travellers through the journing.
I propose that Dairy Queen provides Special Tea milk because this dairy will contain the special elements for tea and it will catter or draw in those people who wank best quality and delicious tea because want change new things. In the beginning Dairy Queen provides 250ml and 500ml packaging.
I propose that Dairy products Queen will bill low price matching to level or weight of the milk. It will ask for or will give savings for 1000ml, 1500ml and 2000 ml product packaging. Because by offering special discounts based on the packaging of milk more customers will get towards this.
Dairy Queen Milk(ml)
Prices for Dry up Dairy Queen Milk
Dry Dairy products Queen Dairy(gm)
Dairy Queen Tea Mlik
Dairy Queen Tea Mlik(g)
I recommend that Dairy Queen will sell on large very stores which has a long chane in Pakistan like METRO PAKISTAN, MACRO PAKISTAN, H Kareem Bakhsh Store and Utility Stores. Becausse a huge number of people or households go their for large shopping mean they do the searching for the whole week and sometimes for your month. Also small stores will choose the Dairy products Queen from these large stores.
I advise that Dairy Queen will first determine the demand of the full total market. Dairy Queen will separate the market. For example they'll put Dairy products Queen on the big stores according with their demand. One team of Dairy Queen will accommodate the colleges and universities canteens. First they'll know the demand of them then they will provide. Another team will provide the railway channels and bus channels. Because there are also the canteens and the retailers on the railway channels and bus halts.
I advise that Dairy Queen will use different kinds of advertisements because it is going to mass development. Now you won't only go to promote the prevailing product but also the new products.
I propose that Dairy Queen will advertise through Tv set and Radio because they're catering a huge market and they're heading to mass production. Through it they will create involvement in the mind of the customer about the product. And there also some places where the people do not have the TV so through the radio they will get the mind of the customer.
I propose that they'll also advertise t abrasive the print mass media leaflets. Specially for the new products like Dairy Queen dry milk and Dairy products Queen tea dairy. Leaflets should be achieved on the bus stopes and the railway stations where the traveler move every time.
I recommend that in the big cites like Lahore, Karachi and Islamabad Dairy Queen will advertise through the costs boards because these are the posh areas and people spend a great deal on the consumer goods. So by advertising through billboards Dairy queen will click on the mind of the clients.
I propose that dairy queen will also promote the product through the deal promotion. Sometimes dairy products queen will give free samples on borrowing in volume. For example if the shopkeeper will buy 10 cartons of dairy queen dairy products queen will give free wall membrane clock or a load up of spectacles etc. Dairy queen will also give the motivation to the school and colleges canteens because they are also purchase in bulk. So dairy queen can provide discount in cost per carton because by doing this it will motivate the canteen land lord. Sometimes dairy products queen can also give like eyeglasses with logo dairy products queen. It will develop a positive impact in the mind of the owner as well as the customer.
I propose that dairy products queen will also promote its product through the sponsorships like when sometimes the home complements are happen because by doing this they will create social and corporate image. It can also promote through programs like sometimes it can organize a concert in the colleges and universities using this method it'll create a strong relationship with its customers.
I prose that whenever it launches its new products like dairy products queen dry dairy and dairy queen tea dairy. It will supply the free examples to the people. Dairy queen team will also go to schools, universites and colleges to test free samples.
I propose that Dairy Queen will generate a data basic through which it is going to keep in touch like it should now the demand of the big customers like Metro and Macro Stores. Because by doing this it will also negociate for price because big stores will demand for price lowering.
I suggest that it'll different incentives with their employees like in case of more sale it will give bonuses with their employees and it'll give their workers the free medical treatment.
I recommend dairy queen will give training with their employees because employees are the assets of your company. They must have the skills that how to deal with the customers. Because they have got an important effect on the development of the business enterprise. Specially the sales persons of any company who will be the representative of dairy products queen. Their habit with the clients will be good.
I propose that dairy queen will give certain incentives to their employees to motivate them. They must be given bonuses foundation on their performances. It should placed the target because of their employees and it'll supply the rewards in line with the completion of their tasks. Its employees should be experts. It will give or arrange training programs because of their staff.
I suggest that Dairy Queen will provide fast and good service because it is targeting a large market including small and large stores, college or university and university canteens, railway channels and bus halts. I would recommend that Dairy products Queen will provide as much more on the market as the demand
I recommend that Dairy Queen will take care the way to obtain the milk in the market because if the source will not meet the demand then it's possible that customers dissatisfy with the Dairy products Queen and change to another. There will never be lack of any product packaging plus they should be inspection of the natural material which is essential for the development of UHT milk and Dairy Queen will also take care the quality of the milk. Because if they won't check and balance then it's possible that Dairy products Queen expire before which create a poor impact in the customer mind.
I propose that Dairy products Queen will be accessible at small outlets and big stores and also the Electricity Stores (Stores run by Administration). It'll be available in energy stores because by advertising through utility stores it will be available to more people. Because many low level and middle class level people go to Energy Stores for shopping.
I advise that Dairy products Queen will also sell at college and universities canteens because there are a large amount of students in colleges and universities. Pakistan weather is warm so are there eight calendar months of warmer summer months so by providing on canteens a lot of sales can be increased.
I suggest that Dairy products Queen will also sell at Juice retailers and tea stalls because mainly people who go for work go to these outlets for tea and dairy shakes.
I propose that Dairy products Queen will also sell at hotels which is there on stations and bus halts because many people go for journey daily.
Action and Implementation: (Marketing Management Handouts)
When a business have been place its marketing strategies and methods that it becomes necessary to the company to turn them into actions and implementations.
Dairy Queen use its own marketing staff as well as it will seek the services of or take the tasks of SAAM marketing company.
There are many methods for setting up budget
Percentage of sales
All you can afford
The objective and process method
I advise that the company will choose competitive parity method to make cover its product. Because Haleeb Foods is a solid company and it has a strong brand portfolio so it will set its budget regarding to its competitor.
I recommend that the business will choose the monitoring technique to check whether it is achieving its targets or not. For this the company can do the emphasis group survey and also the questioners survey to know the perception of the customers about the product. The company will do focus group after every six months and use the questioners' survey quarterly. Because by doing these surveys the business will maintain touch with its customers.
Jan, Feb, Mar, Apr, May, Jun
July, Aug, Sep, Oct, Nov, Dec
TV and Radio Advertisement
Hiring and Training of employees
Monitoring customer satisfaction
Advertising through print media
Advertising through outdoor media
Sponsorships through games
Sponsorships through concerts
Office structure and decorations
1. 7 Monitoring and Control:
We use monitoring on going process it means that we divide the whole year into different cycles and then check the performance matching to our objectives while in charge we check the performance annually.
a)I've chosen the dairy products queen since it was in decline stage. I believe the basic reasons for its decline level is the unawareness about the product it means that typically people do not have much information about the product because of the less promotion of the product. If people don't have enough knowledge about the product plus they have no idea the features of the product they'll not buy that product. The fragile circulation system is also another drawback of the product. The company use their own sales team to provide its product but they are fail to match the demand of the market because the shortage of the product and sometimes shopkeepers are also facing difficulty in providing that product. The product packaging of the merchandise is also another downside because typically people did not acknowledge the this pouch presentation because they face problems to transport it. The expiry time frame is also another concern for the decline of the merchandise because customers complain that the merchandise expire prior to the expiry date and for this reason the shopkeepers also face a lot of problems.
Before Starting Experts in Business Administration I've done bachelor in business. I have studied Marketing in Bachlors but I've not gain a clear idea about the conditions. Before MBA I simply only Understand that what's marketing mix I know only it contain only four elements product, price, place and promotion. I have only some idea the facts. I do not know that how I could apply these terms. First I only know that product is a physical thing or a brandname like coke, glaciers cream, burger, oil and detergants etc which I can purchase from anywhere. And I have some idea about the merchandise life cycle however, not so much at length. In my brain the price is just the money which we pay to buy something. I've not studied prior to the factors to concern with prices and the approaches for setting the prices. I have idea about the place mix but no very much because In my own mind advertising mean was just ad and sales promotions
Current Learning, Final results and applications:
When I start first component MBA from London College of Business and Finance I've only the general overview about these terms of the marketing mixture process. But know it is almost is the finish of the first component and I've gained a whole lot of Knowledge about these conditions not only standard but also the precise. First I only know that we now have only four P's in marketing combine and only know that what is their meaning. But know I've learned that we now have seven elements in marketing combination that happen to be Product, Price Place, Promotion, People, Process and Physical evidence. Product isn't just the in physical form but it may also be anything. It can be a service it could be an idea.
Now I've a better understanding of the branding first I only consider that it is only a symbol or logo which shows only the company importance but it is more than this. There are different benefits associated with branding for the consumers through it consumer come to learn much about the product for example it gives certainty, consistency and decrease the risk and folks are so much dedicated about the brand.
There a wide range of strategies to arranged price for new product like Market penetration strategy, market skimming and early on recovery strategy. For example if I choose market penetrate technique for my product first I am going to choose low price for my product when my product will gain an increase in market show I will increase the price.
In place mixture I can choose the channel of distribution for my product. There are plenty of factors to choose channel of distribution. For example it is determined by the nature of the product.
There are extensive ways through which I can promote my product. For instance I've choose broadcast marketing TV, print press leaflets and outdoor billboard for advertisement for Dairy Queen milks.
In people mixture that they will be skilled and the look of them will be good looking and their tendencies. The process mixture like company plans, capacity level but not so much. Through physical facts like Logos, Packagng and equipment etc a firm can attract the clients.
Before starting MBA from LSBF I needed idea about the marketing plan however, not so much. I had only know that in marketing plan we do SWOT analyses, Infestations evaluation, BCG matrix, set budget and lastly implement.
Current Learning final results and applications:
Now I've clear idea about the marketing plan that how can it work.
A marketing plan is a specification of any organization's activities and market intentions gives a route to a company to the future.
The marketing plan process have following steps.
It includes following
It is helful to an organization because using this method a company able to find out about its advantages and weaknesses and also start to see the opportunities and the danger on the market where it is undertaking.
It is helpful to an enterprise to understand the macro environment where the business is working or it want to go.
It helps an enterprise to comprehend the factors like plotical Administration stableness and taxation, economical interest levels and the ifflation, community lifestyles and beliefs, technological scientific skills, legal job legislation and envitonment inexperienced issues.
Objective setting up:
In objective preparing a company arranged that what it want to achieve company has corporate and business, business and operation goals company use a good Criteria to create its aims.
It helps company to make strategies for achieving targets.
The Ansoff matrix:
It helps a corporation to choose that it'll go for growth or decide to increase. It contains
The BCG matrix:
It can be used by those companies who've a stock portfolio of different products.
It helps a firm to compare the actual earnings with the forecast profits and finally Difference out the difference.
Porter's competitive strategies:
It helps an organization to choose whether to compete in certain segments or across the entire market or whether to remain competitive through low cost or through differentiated products.
Cost Control, Differentiation and Target.
These are techniques that help a firm in the success of the strategies.
Action really helps to transform marketing strategies and strategies into actions. It includes three activities,
Allocating jobs and responsibilities
Scheduling of marketing activities
Setting the marketing budget
Methods for arranging budgets:
A company may use any of the following options for establishing its marketing budget.
Percentage of sales
All you can afford
The goal and activity method
For example a little company can use All you are able method.
Monitoring or Control:
It helps an organization to sure that the objectives are being achieved corresponding to their ideas.
In control we use different methods
The Marketing Audit